TransUnion (NYSE/TRU) went public today (June 25th). TransUnion’s stock price surged more than 11.7% to as high as $25.14 a share within its first hour of trading.
TransUnion is a company that provides credit data and information management services to approximately 500 million consumers and 45,000 businesses around the world.
In the TransUnion initial public offering (IPO) filing to the Securities and Exchange Commission (SEC), the company expected its shares to be priced between $21.00 and $23.00 a share. According to the company’s press release on Thursday June 25th, the IPO was priced at $22.50 a share. (Source: TransUnion, June 25, 2015.) At the IPO price, the net proceeds would be approximately $626.5 million after deducting IPO-related expenses.
The first hours of trading reflect investors’ fondness of TransUnion stock. Indeed, they have been a solid company with consistent revenue growth. In 2010, revenue was $956.5 million; by 2014, it was already at $1.3 million. See “TransUnion IPO: 3 Reasons Warren Buffett Would Invest in It.”
TransUnion’s IPO price gives the company an approximately $4.0 billion valuation. Combining with last year’s revenue, TransUnion has a price-to-sales ratio of 3.07, far lower than its competitors. Its two main rivals, Equifax Inc. (NYSE/EFX) and Experian plc (LSE/EXPN.L), have price-to-sales ratios of 5.01 and 3.65, respectively.